Sexual Misconduct Allegations Show That the Real FEMA Disaster Is Behind the Scenes

|||JASON REDMOND/REUTERS/NewscomAccusations of sexual misconduct and nepotism have come out against former Federal Emergency Management Agency (FEMA) personnel chief Corey Coleman just weeks after Coleman resigned in June. The Washington Post reports that Coleman, whose $177,150 salaried, senior-level role began in 2011, allegedly used his position to hire and promote both personal friends and women with whom he had a personal interest, despite their lack of qualifications. He also allegedly instituted practices that placed certain female employees in close proximity to certain male employees for sexual purposes.

The Post reports that it received information about Coleman’s behavior from a detailed summary of a seven-month investigation into complaints about the work environment. The investigation was carried out by the staff of FEMA Administrator William “Brock” Long.

“What we uncovered was a systemic problem going back years,” Long told the Post.

Coleman is believed to have hired friends, college fraternity brothers, and women he met at bars and through online dating. He is additionally believed to have circumvented official channels to promote his employees. Coleman is also accused of transferring some of the women he hired to various departments and regional offices so that his male friends could attempt to begin sexual encounters with them. Several of those involved still work at FEMA.

The investigation also alleges a sexual relationship between Coleman and two of his subordinates, one in 2015 and one in 2017. The women supposedly accompanied Coleman on work trips. The first woman told investigators that Coleman attempted to retaliate against her after she tried to end the relationship. She said she managed to keep her job by telling Coleman there was a possibility of them being together in the future. The second woman told investigators that Coleman created a new position for her when she expressed that she wanted to leave the agency—she admitted that she was unqualified for the position.

According to Long, some of Coleman’s suspected activities could be grounds for criminal charges.

Long also asserted that the problems don’t end with Coleman’s resignation. He himself claimed to have sent several harassment complaints to the inspector general at FEMA’s overseeing federal department, the Department of Homeland Security (DHS). FEMA officials confirmed to the Post that DHS merely referred the complaints back to FEMA. They also confirmed that several complaints were made against Coleman before Long’s arrival at the agency.

Long called for further investigation from DHS in a statement that was released on Monday. He also announced the establishment of an Office of Professional Responsibility to “ensure expeditious, fair, and objective follow-up and resolution of allegations of employee misconduct.”

“The biggest problem I may solve here may be the eradication of this cancer,” he told the Post. “How many complaints were not heard? I’ve got to make sure we have a safe working environment for our employees.”

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Petition To Block Steve Bannon From Entering U.K. Gathers Support

Thousands of people have signed onto a petition  calling on the British government to ban former White House chief strategist Stephen Bannon from entering the country.

Coming shortly after reports  that Bannon plans to lead a populist revolt throughout Europe which, if successful, will crush George Soros and his network of open-border NGO’s to smithereens, the petition describes him as a “far-right political figure” and says that he “poses a direct risk” to the country’s security.

“He should not be allowed to enter the UK to spread messages of hate,” the petition reads.

In fact, just a few hundred more and the UK government will be forced to respond to the petition…

Bruce Johnston, the activist who started the petition, told Bloomberg  that Bannon is “dangerous” because of his support for anti-Muslim movements in the country.

“We need to get to the stage where we protect our democracy,” Johnston said, adding that “people need to start getting interested in politics because at the moment the bad guys are winning.”

All of which echoes the words of liberals in Europe who are fuming over Bannon – with EU Parliament center-left politician Udo Bullmann branding Bannon’s plan as “an attack on freedom and democracy in Europe,” and vowing a “response” to Bannon’s planned NGO (which, ironically would be an attack on the freedom of populists in Europe who wish to coordinate efforts). 

Liberal Belgian politician Guy Verhofstadt, leader of the Alliance of Liberals and Democrats for Europe (ALDE) and MEP, wants to “ban Bannon” from Europe completely in order to stop his “hate” speech. 

“Steve Bannon’s far-right vision & attempt to import Trump’s hateful politics to our continent will be rejected by decent Europeans. We know what the nightmare of nationalism did to our countries in the past,” Verhofstadt tweeted.

Meanwhile, as RT notes, Bannon’s ties to Brexiteers are deepening with reports that Donald Trump’s former strategist has been in contact with ex-UK Foreign Secretary Boris Johnson for some time, according to Buzzfeed News.

A source for Buzzfeed News said Bannon was “in private contact” with Johnson during his trip to the UK last month. A further source told the publication that their contact stretched back to when Bannon was in the White House and Johnson was foreign secretary. That suggests that their correspondence has been going on since at least August 2017.

Johnson is not the only Brexiteer in contact with Bannon. In December 2017 he met with Tory grassroots darling and EU hater Jacob Rees-Mogg. The MP said Bannon was “an interesting man to have met.”

In an interview with the Daily Telegraph, Bannon urged Boris to act: 

“Now is the moment…If Boris Johnson looks at this… There comes an inflection point. The Chequers deal was an inflection point. We will have to see what happens.”

While on Farage’s LBC radio show, Bannon stated that he’d always been “very impressed” with Johnson, adding:

 “If you look at Boris’s resignation letter and if you look at him and his writing, if you look at his book on Churchill. He is a student of Churchill.”

Johnson – who once said that Trump was “clearly out of his mind” – has characteristically changed tack, praising the US leader and stating that Trump would do a great job of Brexit negotiations. In turn, the US leader endorsed his “friend”Johnson, claiming he would become a “great prime minister.”

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Hundreds of Floridians Ordered to Surrender Guns Thanks to ‘Red Flag’ Law, Report Says

More than 450 Floridians have been ordered to surrender their firearms since the state’s “red flag” law took effect in March, according to a new report.

Republican Gov. Rick Scott signed the legislation into law weeks after the shooting at Marjory Stoneman Douglas High School in Parkland, Florida, claimed the lives of 17 people. The Risk Protection Act allows authorities to file “risk protection orders” (RPOs) against those who supposedly pose a threat to themselves or others. Such people are not allowed to buy or possess firearms.

According to WFTS, the new law has directly affected 467 people, roughly a quarter of whom have concealed carry permits. WFTS reports:

Since the law took effect in mid-March we’ve learned the number of risk protection cases filed in Florida now total 467, as of July 24th and according to the FL Department of Agriculture and Consumer Services (DOACS). DOACS oversees gun permit licensing in Florida and is notified when a petition is filed. An agency spokesperson revealed just over a quarter of risk protection cases filed so far involve concealed license firearm holders whose license temporarily is suspended once the order is granted.

Authorities are more likely to seize guns in some parts of the state than in others. In Broward County, where the Parkland shooting occurred, 88 RPOs have been filed in court (it’s up to a judge to decide whether to grant the order). And in Pinellas County, the sheriff’s office has filed 64 RPOs. “In all, we’ve taken in about 200 firearms and around 30,000 rounds of ammunition,” Sgt. Jason Schmittendorf of the Pinellas County Sheriff’s Office told WFTS.

But the “red flag” law has been criticized by those who say it violates Floridians’ constitutional rights. Though the legislation is meant to stop violent and/or mentally ill people from carrying out shootings, RPOs have been filed in some cases against perfectly sane, harmless people.

In March, Reason‘s Jacob Sullum noted the case of Chris Velasquez, a 21-year-old student who allegedly fantasized on Reddit about shooting up schools. After police portrayed him as a serious threat, a judge issued a temporary RPO against him, even though he didn’t own a gun in the first place. Velasquez successfully argued that he was simply trolling, and the judge declined to extend the RPO.

“These are individuals who are often exercising their First Amendment rights online, who are protecting constitutionally protected speech online,” says Kendra Parris, an attorney who represented Velasquez. “Maybe it was odious, maybe people didn’t like it but they were hit with the risk protection order because of it.”

It’s not terribly difficult for law enforcement to get a temporary RPO. As Sullum points out:

A police officer can obtain a temporary order, lasting up to two weeks, by persuading a judge there is “reasonable cause to believe” that the target “poses a significant danger of causing personal injury” to himself or others “in the near future” if he is allowed to possess firearms. No allegation of mental illness is necessary, and the target has no opportunity to contest the claims about him.

The respondent doesn’t get a hearing unless police want the RPO to last for more than two weeks. To do so, law enforcement must prove that “the respondent poses a significant danger of causing personal injury” to himself or others.

Clark Neily, vice president for criminal justice at the Cato Institute, tells Reason that if authorities want to take away someone’s guns, they should give him the “opportunity to appear in court” and make his case first. “A procedure that doesn’t include” this step, says Neily, whose areas of expertise include constitutional law and gun rights, “is clearly unconstitutional.”

Neily doesn’t think “red flag” laws in general are unconstitutional, but he expressed concern over the lack of accountability involved in the process of seizing someone’s guns. “There’s no accountability for judges and prosecutors, and there’s almost no accountability for police,” he says.

“If you’re a law enforcement officer or even a judge, you’re unlikely to get in trouble for taking guns away from somebody who really wasn’t a threat,” Neily adds. “But you’d get in a lot of trouble for failing to take away somebody’s guns if they then go do something horrible with them.” Thus, “the incentives point in the direction of erring on the side of taking away somebody’s guns.”

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“Hi, My Name Is… & I Am A Yield-Curve-Apologist”

Authored by Kevin Muir via The Macro Tourist blog,

I am sure many of you are sick of my yield curve talk. I have been babbling about the curve for far too long. I guess it’s a little understandable as I believe a steepener position will be “the” trade during the next crisis.

Yet there can be no denying that so far, I am wrong and the yield curve keeps going down faster than the plate of drinks at the end of David Hasselhoff’s table after a taping of Britain’s Got Talent.

It’s not an expensive position to carry, so it’s not like I am bleeding profusely from the position, but there can no denying the call has been a dud.

However, lately, I have noticed an abnormal amount of yield curve talk from the financial press and other ‘tourists like myself who jump from asset class to asset class. Suddenly everyone is talking the 2-10 spread, or for those with a little longer time horizon, the 5-30 spread. For real bond traders, this must be maddening. Most of these supposed yield curve experts have probably never even traded the FV/US spread. Heck, most of them likely don’t even realize there is a specific contract combo listed on the CBOT (I know it’s now the CME, but in my mind, bonds will always trade at the CBOT).

Yield curve talk obsession – perception or reality?

Wondering if it was merely my perception, or if there really was more interest in the yield curve, I queried Google Trends. Thinking maybe it was like when you are about to buy a new car and all of a sudden notice a huge uptick of those cars on the road, I worried my brain was distorting the market’s interest in the yield curve.

Nope. I was right. Interest in the yield curve has been shooting through the roof. Of no great surprise were the areas that registered the most increase in yield curve searches. After NY and Connecticut, it was Washington and then Boston. Basically, the finance states are worried about the flattening yield curve.

But of course there is more yield curve talk within the financial press – we are at that point in the cycle when it is used as a timing signal for the onset of a recession. So maybe I should be comparing the yield curve interest to this point during the previous economic cycle. Did we also see an uptick in yield curve talk last time?

Much to my surprise, there were more people googling “yield curve” in 2005 than today. Would have never guessed that.

My take? All the “real” bond traders will become even more frustrated in the coming months as yield curve talk continues to dominate the airwaves. Watch for even more “yield-curve-disaster-in-the-making” articles.

Markets never set up so neatly

Let’s have a look at why so many seem obsessed with watching the yield curve. During the past three recessions, the 2-10 year US Treasury yield spread went negative about a year before the onset of the economic slowdown.

What a perfect signal. You wait for the 2-10 spread to go negative, give it a year, and then bet on a recession. It’s that easy.

Well, I might not know much, but one thing that has gotten me into more trouble is to assume markets will play out neatly according to a schedule. By the time everyone is talking about an indicator as a “can’t miss” signal, it’s time to think about finding a new one.

I admit it – I’m a yield curve apologist

One of my favourite fixed-income strategists is Janney’s Guy LeBas. Lately I have been having a good laugh at Guy’s labeling of pundits as “yield-curve-apologists.” If I may paraphrase his argument, Guy believes the world’s largest market’s collective wisdom is the best signal out there and for those that somehow find a way to convince themselves they know better than the market are arrogant beyond belief. Yeah, I get it. We all know the most expensive four words in the history of investing.

Guy has little time for the central banking academic sect who warn the yield curve might no longer be a reliable economic signal, ironically, due to the quantitative easing programs central banks themselves instituted. From the FT:

At the risk of taking the other side of Guy’s rant and being tarnished a ‘yield-curve-apologist”, I respectfully caution Bernanke & Co. might be correct. Yeah, I know – I threw up a little in my mouth as I wrote that, yet Bernanke might be right that the yield curve has lost its predictive power, but not for the reasons he believes.

Most “yield-curve-apologists” believe the gargantuan Quantitative Easing from the Bank of Japan and the ECB is distorting the long end of the US bond curve. They argue the recent flattening is little more than capital seeking to pickup some yield by venturing out the US yield curve. Why invest in Japanese 10-year JGBs at 0.11% when US 10s are yielding almost 3%? This incessant QE bid has kept the US long-end much lower than would otherwise be the case and thus rendered the yield curve signal less effective.

Well, I think Guy would argue that the US bond market is bigger than the BOJ and the ECB and there have always been different forces at work, yet the yield curve has consistently provided a signal for the onset of the next recession. The market is smarter than any one of us. Don’t try to outguess what it is telling you.

But what if the Fed is influencing the yield curve in another way?

As I have mentioned before, I believe the exponentially growing amount of sovereign debt and government’s willingness to inflate it away will eventually cause the yield curve to hit all-time wides.I find it perplexing that often those market participants most worried about the growing government debt are the very same ones advocating owning long-dated “supposedly safe” sovereign bonds. The more debt that is created, I believe the more likely it will be inflated away.

No sense going through all the arguments about whether governments and central banks can accomplish this feat – I firmly believe that history suggests they can, but that’s a story for another time.

What is most interesting is the market’s perception of this growing debt, and how the Fed’s reaction function affects the yield curve.

I have had the good fortune to talk to a lot of people way smarter and knowledgeable than myself. The other day I was chatting with the head long-bond trader for a big bank and we were chatting about the curve. I told him how I was bullish on rates (with a curve steepening) and he asked how I could square that with the fact that R* was falling. He asked me my estimate for R* and I told him that I didn’t bother trying to estimate the short-term economic equilibrium interest rate as I felt it was too much of a guesstimate even from economists who practice the dismal science full time. Instead, I look at the direction of the trend, which in this case is higher inflation and a stronger economy, and measure the risk-reward of it either getting stronger or weaker. With real rates still firmly negative, fiscal policy more stimulative than any time in a decade, and most importantly, an absolute monster pile of monetary fuel just waiting to be lit, I thought the risks were that the economy would propel higher than most were expecting.

The long-bond trader politely listened to my argument, but then proceeded to teach me how “real bond traders” created their forecast. He argued R* (the natural level of interest – the equilibrium rate) was crucial to calculating the terminal point of the Fed Funds hiking cycle, and that this estimate reverberated throughout the curve. If a fixed income portfolio manager’s R* estimate was 2%, then with 2% inflation the economy would most likely stall if short rates were raised above 4%. As the Federal Reserve hikes Fed Funds closer to 4%, the portfolio manager is willing to increase his duration (buy more longer dated bonds) because he/she views the Fed’s restrictive monetary policy as likely to slow down the economy and cause rates to be lowered. Guessing the terminal point of the Federal Reserve hiking cycle becomes the most important game in town.

Obviously, it is more complicated than that, so I don’t mean to suggest that if you could predict the last Fed hike that you could determine the right price for the US 10-year Treasury yield, but there can be no denying that this exercise is one of the most important influences on the US treasury curve.

Falling natural level of interest

This R* or the natural level of interest has been falling for quite some time.

There are plenty of different reasons for this phenomenon, but all you need to do is look at a long-term graph of interest rates to realize that the economy has stalled at progressively lower and lower levels of Fed Funds.

Back to my long-bond trader buddy, his argument came down to the fact that Fed Funds have peaked at decreasing levels, and that on this cycle, the Fed had taken the rate close enough to the level at which the economy would stall, and therefore it was time to head out the curve. This is why the curve has been flattening. It is the collective judgment of all market participants that the Fed is increasing the chances that the economy stalls due to higher short-term rates.

The question then becomes, who am I to suggest that I know better than the market?

Well, although I don’t pretend to have all the answers, I don’t buy for one second that the market is some sort of all-knowing signal that never gets it wrong. The DotCom bubble, “real estate never goes down on a national level” mania, Japan in the 1980s – there are plenty of times when markets have been spectacularly wrong.

So I don’t think that just because the yield curve is flattening that we must accept the economy is slowing. Especially when the actor that sets the short-term interest rates (the Federal Reserve) can influence R* by simply stating their estimate.

As the Federal Reserve has lowered their long-run estimates of the natural level of interest rates, investors have responded by flattening the curve. After all, if the Federal Reserve believes that long-run growth will be limited, that equates to a lower terminal fed funds rate. This, in turn, makes longer dated bonds more attractive and encourages investors to extend duration.

Yet does the Fed really know any better than anyone else what is R*? If the Fed came out tomorrow and said that they believed the natural rate of inflation was 50 basis points lower, would that actually cause the natural level of interest to fall 50 bps? Yet this admission by the Federal Reserve would flatten the curve without anything actually changing in the real economy.

So I call bullshit on the fact that anyone really knows R*, or that anyone can predict when the Fed funds rate hike will stop. The truth of the matter is that there are so many different variables, it is unknowable.

But maybe I am making Guy’s argument for him. Maybe no one can tell, but the wisdom of the largest market in the world is the best guess. Sure, I buy that.

Yet what I am even more sure of is that at major turning points in market cycles, old paradigms die hard. Did the bond market believe Volcker would kill inflation? Not a chance. Even when he cranked short-term rates, markets assumed inflation would continue rising aggressively. So where was the “collective wisdom” of that market reaction?

The bond market might be deeper, more liquid and ultimately more efficient than any other market in the world, but it’s still a reflection of human beings. And human beings get it wrong. All the time.

Fading history and the “smart money”

Here is my prediction – there is a good chance the yield curve has become a less reliable economic signal. I understand that I am not only fighting history with that statement, but going against the likes of Gundlach and Rosenberg (and even more scarily – LeBas!) So be it. I have made bad calls before, and this won’t be the first, nor the last.

But I refuse to believe that R* is anything more than a made up estimate prone to massive errors. The yield curve is flattening because everyone is convinced they know that level. Well, what happens if the economy doesn’t roll over on cue?

My suspicion is that the yield curve will get increasingly more volatile as we progress through this next change from a dis-inflationary to inflationary environment. Although I think the 2-10 will eventually hit record wides, it also wouldn’t surprise me if the curve plunges to weird negative levels that convinces the majority of participants that a recession is right around the corner, yet the signal ends up being false.

I realize I am being mopey and not firmly stating a forecast. I get it. Five years from now the yield curve will be much, much steeper, but how we get there, I don’t know. When Volcker raised rates and killed inflation, the curve became super volatile. It bounced around like a bunch of squirrels chasing each other in spring. But the end result was that bonds were a screaming buy. Just the opposite situation to today. Central banks and governments are determined to create inflation and bonds are a screaming sell. Just don’t ask me for specific timing.

Now I have to run. LeBas wants to scold me on twitter for my idiocy of joining the #yieldcurveapologists…

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Lira Plunges, Turkish Yields Hit Record High After Court Rejects Appeal To Release US Pastor

Commenting on the ongoing drama involving arrested American Pastor, Andrew Brunson, who is currently under house arrest in Turkey after being imprisoned for almost two years on charges of participation in a 2016 coup attempt, Trump’s attorney Jay Sekulow tweeted overnight that “We won’t stop fighting until the pastor is safely home in America

And perhaps sensing that the Erdogan administration would need to cave on this matter, if it hopes to stop angering Donald Trump, the market pushed the Turkish Lira higher in recent days, expecting some normalization in diplomatic relations between the two nations.

Well, it was not meant to be, because moments ago a Turkish court rejected an appeal Brunson’s lawyers to be released and for his travel ban to be lifted, Turkey’s Sabah newspaper reported.

As a result Brunson will remain under house arrest and under a travel ban, and Trump will continue threatening with imposing imminent sanctions on Ankara until one day he finally does.

And in separate news, overnight the Turkish central bank highest its 2018 inflation estimate by more than 50% as the Turkish economy implodes, and now expects 13.4% inflation vs 8.4% previously.

As a result of the latest Brunson news, and coupled with the country’s soaring inflation, not only has the lira tumbled, dropping as low as 4.92…

… but the Turkish 10Y yield has spiked 45bps to a new all time high of 18.86%.

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Venezuela Slashes Zeros From Currency to Fight Inflation

Venezuelan President Nicola Maduro took to television last week to announce his solution to the country’s monetary woes: eliminating five zeros on all new Venezuelan bolivar bills.

Sure, that’s an unorthodox—some might say useless—attempt to combat hyperinflation, but the great Venezuelan experiment with socialism continues apace.

At present, the highest denomination bill available is 100,000 bolivars. The new bills, set to hit the streets on August 20, will range from two to 500, with each unit representing 100,000 bolivars. To put that into perspective, as of last month, a cup of coffee in Venezuela cost 1 million bolivars. Maduro initially floated the idea of eliminating three zeros from bolivar bills in March, but didn’t follow through—and four months later it’s seemingly clear that hacking a mere three zeros off the currency won’t solve anything. But five, ah, now you’re getting somewhere.

Hyperinflation has been a consistent problem in socialist Venezuela. Maduro’s predecessor, President Hugo Chavez, enacted a similar policy in 2008, eliminating three zeros from the national currency. It did little to fight the underlying causes of Venezuela’s inflation. Instead of trying the same silly plan again, Maduro must address the underlying problems leading to Venezuela’s inflation if he has any real intention of alleviating the problems facing his country.

With price and wage controls, and a largely centrally planned economy inherently incapable of meeting the needs of its populace despite being gifted with the largest oil reserves in the world, inflation in Venezuela is here to stay until people abandon the state-sponsored currency.

Already in some parts of Venezuela, many people have turned to Bitcoin, derided as highly unstable in the developed world, for an alternate store of value to the overabundant bolivar. As Matt O’Brien noted on Thursday in The Washington Post, the International Monetary Fund increased its end of year projections for Venezuelan inflation from 12,875 percent to 1 million percent in just a few short months.

On Tuesday, economist Daniel Mitchell examined the World Bank report that compared the Chilean and Venezuelan economies on his blog. Despite their similar histories and cultures, Chile abandoned the socialist experiment in 1973 while Venezuela embraced brutal economic collectivism 1999 under Chavez.

The differences are astonishing. Chile has been blessed with enormous economic growth and some of the highest standards of living in South America while Venezuela lags behind with what the IMF has described as one of the worst economic crises in the last 60 years.

Even as socialists in America assert that “Venezuela wasn’t real socialism,” the evidence to the contrary is clearer than ever. The number of zeros on the bolivar is a symptom; socialist central planning is the disease.

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Louisiana Attorney General Wants State to Hurry Up on Executions—Even If That Means Using ‘Hanging, Firing Squad, or Electrocution’

The death penalty is surfacing as a key issue in Louisiana’s upcoming gubernatorial election, in 2019. With execution drugs unavailable, the state’s top prosecutor is proposing the use of new drugs, nitrogen-induced suffocation, or “hanging, firing squad, or electrocution,” if necessary.

Lousiana has not executed anyone since 2010 when Gerald Bordelon was killed by lethal injection after being convicted of the murder of his 12-year old stepdaughter. Since then, the state has amassed over 70 inmates awaiting execution on death row.

The state’s lack of access to necessary drugs required for lethal injection remains the largest obstacle to carrying these executions out.

In Lousiana, lethal injection remains the only legal form of execution available. But obtaining execution drugs has become difficult, especially after the drug company Pfizer joined with European drug manufacturers to ban their product from being used for executions.

In 2016, Louisiana requested and was approved for an 18-month extension on the execution of Christopher Sepulvado—convicted for fatally scalding and beating his stepson in 1992—due to not having the necessary execution drugs.

Earlier this month, U.S. District Judge Shelly Dick approved a year-long extension of execution delays after a request was filed by the state.

Defending his administration’s request , Gov. John Bel Edwards (D) said in a tweet that Louisiana was limited by a “legitimate problem with accessing drug protocol.”

Attorney General Jeff LandryBut Louisiana Attorney General Jeff Landry (R) is not convinced that the problem is legitimate, nor that a solution is really out of reach for Edwards. In a late July letter to the governor, Landry wrote: “If you truly respect the criminal justice system, the rule of law, and the rights of victims-there are a number of initial steps that can be taken”.

Landry went on to recommend policy changes that would allow the usage of the drug midazolam, which has survived court challenges despite constant malfunctions. Additionally, he recommended that the state begin using the compounding capabilities of Angola, the prison facility where executions occur, to provide drugs while cooperating with the Department of Corrections “to avoid any pitfalls that may arise or to find other compounding pharmacies”.

In 2014, Lousiana Department of Corrections contacted a compounding pharmacy but there remains uncertainty if any products were purchased.

Included with Landry’s letter was draft legislation to expand the state’s options for execution to include nitrogen hypoxia, an execution form that supposedly renders an inmate unconscious within moments, and eventually suffocates them. He goes on further to say that if that option is unavailable, then the method shall be by “hanging, firing squad, or electrocution, in the discretion of the Secretary of the Department of Corrections.”

In an interview with Channel 33 in Baton Rouge, the governor expressed opposition to executions beyond lethal injections. “Hangings and firing squads? No,” said Edwards. “I’m not inclined to go back to methods that have been discarded because popular sentiment turned against them, some methods deemed to be barbaric.”

A potential candidate for governor in 2019, many speculate that Landry will use this issue to score points with the voters who desire a “tough on crime” candidate. This is one of many issues that Landry and Edwards disagree on and continue to battle with one another over.

Some, like New Orleans Advocate writer James Gill, find Landry’s attempt to score political points with such an issue to be disrespectful and poor taste. “Landry wants to bring back hanging, that relic of America’s days as a British colony,” wrote Gill in his July 28 column.

“With polls showing a majority of voters in favor of capital punishment, Landry evidently thinks being gung-ho for carrying out death sentences will aid his gubernatorial aspirations” and “loses no opportunity to suggest Gov. John Bel Edwards is a wishy-washy liberal” on this issue, Gill continued.

Landry’s actions might curry favor with the 58 percent of the Louisiana electorate that favors the death penalty. In May, a bill that would have abolished the death penalty in Louisiana failed to pass the Louisiana House of Representatives and did not make it beyond committee in the Louisiana Senate.

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Koch Bros. Should ‘Shut Up and Get With [Trump’s] Program,’ Says Steve Bannon

Back in San Francisco in 1967, there was an event that helped catalyze the “Summer of Love” and was variously billed as “Human Be-In” and “A Gathering of Tribes.” It featured a variety of beat-hippie poets (Allen Ginsberg, Gary Snyder), popular area rock bands (such as the mostly forgotten Quicksilver Messenger Service), and Timothy Leary at peak guru-ness, proclaiming it was time to “turn on, tune in, and drop out.”

The tribes included

leftovers from the North Beach Beat scene and Berkeley’s antiwar protesters. It meant the Hells Angels and the flower children, and it meant impressionable high school teens and anybody on the cusp of either needing a haircut or deciding not to get one.

Organizers got lucky with the weather, which was sunny and unseasonably warm, conducive to bringing “family, animals, cymbals, drums, chimes, flutes, flowers, incense, feathers, candles, banners, flags,” as one of the posters requested.

That was then, this is now.

Tribes these days are mostly political and you can leave the family animals, feathers, and flowers at home. Here’s Steve Bannon, dismissed adviser to President Donald Trump, ranting about the Koch Brothers (Charles and David, both of whom contribute money to the nonprofit Reason Foundation that publishes this website, the latter being a longtime member of the board trustees) for insufficient loyalty to Fearless Leader:

“What they have to do is shut up and get with the program, OK?” Bannon said in an interview with POLITICO. “And here’s the program: Ground game to support Trump’s presidency and program, [and] victory on Nov. 6.”

Bannon! How many divisions does he have these days? Well, here’s Donald Trump himself, tweeting like a motherless child crying for his Maypo:

The Koch’s sins are that they disagree with Trump on many issues, including criminal-justice reform, trade, and immigration. They want more of it than the president and his supporters, who have managed in just a few years to utterly transform the GOP into the party of protectionists and xenophobes. It wasn’t always this way, as anyone who remembers Ronald Reagan and George H.W. Bush can attest.

The president of the Charles Koch Foundation, Brian Hooks, puts it this way:

“The divisiveness of this White House is causing long-term damage,” Brian Hooks, a senior Koch lieutenant, told reporters at the event. “When in order to win on an issue someone else has to lose, it makes it very difficult to unite people and solve the problems in this country. You see that on trade: In order to get to a good place on trade, convince the American people that trade is bad.”

There’s a reason why Donald Trump was able to win the presidency with 46 percent of the popular vote. Political tribalism, unlike its hippie counterpart, demands blind loyalty. Shut up and get with the program, as Steve Bannon puts it. But the tribe that Donald Trump and the Republican Party represent is growing smaller every day. The same holds true for Democrats as well. Each party has devolved into less-appealing clusters of incoherent special interests that, while being less representative of America in general demand even more unthinking loyalty. Go find a pro-choice Republican and a pro-life Democrat (these creatures once existed). Since when did believing in lower taxes mean you had to rage against millionaire football players for kneeling during the National Anthem? Or that allowing children brought here illegally by immigrant parents meant you had to support single-payer health care?

As Stanford political scientist Morris Fiorina told Reason earlier this year (full interview, transcript here):

“You have two parties in a heterogeneous country where people have all kinds of views… It’s simply not enough to represent diversity in this country.”

In his latest book, Unstable Majorities: Polarization, Party Sorting, and Political Stalemate, Fiorina argues that Americans actually agree with each other on fundamental issues such as immigration, marriage equality, and pot legalization. The polarization we hear about is mostly restricted to political activists and media elites who mistake their own extreme views for those of the common people.

“Everybody worries about the average American being ensconced in a filter bubble,” says Fiorina. “Most of the research suggests it’s the elites who are in these filter bubbles…and have this biased view of the world.”

Steve Bannon’s bubble was burst a year ago when Trump sent him packing from the White House but he has re-emerged as a vocal defender of his former (future?) boss. Trump’s repudiation of the Kochs lays out neatly one of the most scurrilous forms of argument: You are not allowed to criticize a system by which you benefit. Via his tax cuts, he made the billionaire brothers richer, therefore they have no right to say anything critical about me and my tribe.

This way madness—and increasingly precarious electoral majorities—lies, whether we’re talking Trump Republicans or socialist Democrats, who are espousing their own version of shut up and get with the program. The upside is that such purity tests and demands will, as Fiorina points out, drive ever-more people out of the political duopoly and swell the ranks of independents who already comprise a plurality of American voters. Change is coming, always too slow, but it’s coming soon to a polling place near you. And it will reward politicians and parties with a coherent, positive message about decreasing the size, scope, and spending of government and increasing individual autonomy.

Parting video: Among the various songs that may have been inspired by the Human Be-In was The Byrds’ elegiac “Tribal Gathering,” from their 1968 LP The Notorious Byrd Brothers. Take a listen below:

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The End of Tipping? New at Reason

Celebrities, union activists, and politicians demand that the government raise the minimum wage for restaurant workers. They are upset that in 43 states, tipped workers can be paid a lower minimum wage than other workers. The logic behind the lower minimum is that the tips make up the difference.

That’s not good enough for people like Buffalo University law professor Nicole Hallett. She tells John Stossel that, “the problem with tips is that they’re very inconsistent.” She wants to “require restaurant owners to pay the same hourly wage that all other employers have to pay.”

But many restaurant workers like the current system. Waitress Alcieli Felipe tells John Stossel, “don’t change the rules on tips…. If you raise the minimum wage, it’ll be harder for restaurants to keep the same amount of employees.” She works at Lido, a restaurant in Harlem, and says, with tips, she makes $25 an hour, “by the end of the year I made around 48 to 50,000 dollars.”

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The views expressed in this video are solely those of John Stossel; his independent production company, Stossel Productions; and the people he interviews. The claims and opinions set forth in the video and accompanying text are not necessarily those of Reason.

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Americans Are The Most Confident In The Current Economic Situation Since The Peak Of The DotCom Bubble

While ‘Hope’ continues to fade (now at its lowest since Dec 2017), The Conference Board’s Consumer Confidence inched higher thanks to a surge in confidence about the Current Situation to the highest since March 2001.

“Consumers’ assessment of present-day conditions improved, suggesting that economic growth is still strong. However, while expectations continue to reflect optimism in the short-term economic outlook, back-to-back declines suggest consumers do not foresee growth accelerating.”

So, the last time Americans were this excited about the current economic situation was at the peak of the DotCom bubble (and what just happened in the last week to America’s new dotcom bubble?).

Americans aged 35-54 saw confidence collapse (while the younger cohorts confidence soared)…

The wealthier cohort remained confident but the poorest cohort slumped to Jan 2018 lows…

Those claiming jobs are “plentiful” increased from 40.4 percent to 43.1 percent, while those claiming jobs are “hard to get” was virtually unchanged at 15.0 percent. Consumers’ outlook for the labor market was also mixed. The proportion expecting more jobs in the months ahead increased from 20.0 percent to 22.5 percent, but those anticipating fewer jobs also increased, from 13.1 percent to 15.7 percent. Regarding their short-term income prospects, the percentage of consumers expecting an improvement rose from 19.7 percent to 20.8 percent, but the proportion expecting a decrease also rose, from 7.9 percent to 9.2 percent.

Finally, those with plans to buy a home in the next 6 months collapsed to 2-year lows as confidence in a rising stock market tumbled once again…

 

 

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